Economic Indicators of a Country
There are so many Economic Indicators of a Country and these are GDP, GDP Per capita, Inflation and Unemployment rate, Gini-Coefficient and Relative Inequality, HDI-Human Development Index and Education expenditure.
Gross Domestic Product and GDP Per Capita
Gross domestic product is a key indicator of economic growth as well as key Economic Indicators of a Country. Gross domestic product has shown that there is even more value in the economy, higher incomes and rising costs, which means raising the standard of living and thus increasing the income will be high costs.
GDP per capita is a measure of the country’s economic output as well as key Economic Indicators of a Country. It divides the country’s GDP into a total population. Gross domestic product per person can also be used to measure labor productivity in a country because it measures the total output of goods and services for each member of the workforce in the given country.
| Economic Variable | Country A | Country B |
| GDP | 28,10,525 USD | 37,81,648 USD |
| GDP Per Capita | 31,724 USD | 34,615 USD |
Thus, GDP can be interpreted as the sum of income (value added) in the economy, or increases in spending or income growth. When GDP is high, it means that the country has increased the number of manufacturing that has taken place in the economy and high income people and money. GDP growth does not mean that there is equality between people and people rather it shows the overall condition of the economy. GDP per capita is a measure of the total output of a country that uses gross domestic product and divides it into people in that country. The GDP per capita is particularly useful when comparing the country with the country because it shows country practice. Gross domestic product growth reflects economic growth and reflects productivity growth. So, therefore it is recommended that the Country B is in better position.
Inflation and Unemployment rate
Inflation can be beneficial to economic recovery, and in some cases negative. If inflation is too high, the economy may suffer. With low inflation control, increasing employment, consumers have a lot of money to buy goods and services, and the economy is successful and prosperous.
Unemployment rate is a measure of the prevalence of unemployment and is calculated as a percentage of the number of unemployed in the labor market.
| Economic Variable | Country A | Country B |
| Inflation Rate | 0.4% | 1.3% |
| Unemployment Rate | 9.7% | 3.7% |
The problem with high inflation is that even living expenses rise, there are some delays as prices rise and when you get a bonus. As inflation accelerated in pushing the company to increase its value, banks were forced to raise interest rates to maintain profitability and higher rates meant companies were losing business, thus increasing unemployment. This will affect the whole economy. High inflation affects everyone, not only because of increased spending and rising unemployment, but as a drop in living costs. Unemployment is an important indicator to miser index. When the aspect of misery index is higher than 10%, it means that everyone suffers from economic hardship, raising inflation, or both. In response to that, Country A is almost closer to 10% and country B is lower than 10% and having a good position in economy. When comparing a multi-year indicator it is recommended that country B is in better position.
Gini-Coefficient and Relative Inequality
Gini-Coefficient is the only objective number to determine whether a wealth distribution in a country extends from equity distribution. Gini Economic Coefficients is a measure to represent income distribution.
Relative Inequality is an index based regression that summarizes the size of the social economic situation (SES) that is a source of inequality in health care.
| Economic Variable | Country A | Country B |
| Gini Coefficient | 0.297 | 0.289 |
| Relative Inequality | 8.2% | 9.5% |
Gini coefficients 1 (or 100%) show the disparity between the maximum values. However, more than one value may arise if some people contribute to a negative total amount. Guinness multiplier is a general rule of income inequality equivalent to the distribution of total income for countries given in the same ratio between 0 and 1: greater the number greater the income inequality. The interpretation of Relative inequality summarizes that the variable is counted. For example, Relative inequality of 9.5% as comparing higher one is an indicator of low socioeconomic status, implies that those exist in the most deprived group are 9.5 times more likely to experience illness than those in the least deprived group. So, therefore it is recommended that Country A is in better position to consider for exporting goods.
HDI-Human Development Index and Education expenditure
HDI-Human Development Index is a statistical tool that is used to gauge the country’s overall performance in its social and economic dimensions. The concept of human development focuses on the goal as real goal of development should create an environment conducive for people to live long and healthy lives and creative lives.
Education expenditure as percentage of GDP is the overall expenditure by the government for the development of education sector to the progress of the standard education system for delivering better and modern education.
| Economic Variable | Country A | Country B |
| Human Development Index | 0.897 | 0.926 |
| Education Expenditure | 5.52% | 4.93% |
Human development means both expanding the choices of people and promoting their well-being. The most important dimensions of human development are: longevity and good health, knowledge and a decent living environment. This concept makes the difference between the two sides of human development. One is to create human capabilities, such as improving health or knowledge. Another is the pleasure of preparing them for work or entertainment. Educational Expenditure Indicators help limit the limited financial resources for education. Issues related to the distribution of resources they provide include Government attention in education compared to other areas related to specific levels of education in national strategies and values combined with other indicators such as enrollment and study results. When comparing a multi-year indicator it is recommended that country B is in better position.
References
Hazlitt, H. (2001). Economics in One Lesson: The Shortest & Surest Way to Understand Basic Economics. Adelaide: Pearson.
Sowell, T. (2003). Basic Economics: A Citizen’s Guide to the Economy. Perth.
Stiglitz, J. E. (2003). Globalization and Its Discontents. Perth.
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